Netflix Subscribers Drop

Netflix Loses 200k Subscribers

Jade Little

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Stats+of+Netflix+throughout+years+By+Bloomberg%2C+BBC

Stats of Netflix throughout years By Bloomberg, BBC

In the first three months of 2022, Netflix lost two hundred thousand subscribers.  Netflix executives suspect that password sharing may be the reason for this drastic drop.  They have proposed charging people for password sharing and according to MarketWatch, “They estimate 100 million people share login information to watch the streaming service”.

According to CNBC, “Netflix’s plan to capture that lost revenue would start with an alert being sent to account holders whose passwords are being used by other households.”  The company has already started a test of this feature in Peru, Costa Rica, and Chile. Netflix is charging an additional fee to add “sub accounts” for up to two people outside the home.  CNBC states, “The pricing is different per country — about $2.13 per month in Peru, $2.99 in Costa Rica, and $2.92 in Chile, based on current exchange rates.”

BBC is saying that “In a trading update on (April 19th) Tuesday, Netflix said its total number of subscribers had fallen by 200,000 in the first three months of 2022, falling well short of its target. It also said some two million more were likely to quit the service in the three months to July.”  All told, it added 500,000 accounts, bringing its worldwide total to 220 million, which is more than double what it had five years ago. The streaming service lost 700,000 subscribers when it pulled out of Russia after the Ukraine invasion.

The Washington Post states, “Netflix said April 19 that the Ukraine war, inflation, and fierce competition contributed to a loss of subscribers for the first time in more than a decade.”

Netflix is still attempting to fix the problem of sharing accounts.